Gold prices surged on Wednesday as global markets reacted to reduced geopolitical tensions following U.S. President Donald Trump’s decision to temporarily halt military strikes on Iran.
Spot gold rose by 2.3% to $4,811.66 per ounce, while U.S. gold futures for June delivery climbed 3.3% to $4,840.20, extending gains from the previous session.
The rally came after Trump announced a two-week suspension of attacks on Iran and confirmed that Washington had received a 10-point proposal from Tehran, which he described as a workable basis for negotiations.
The move has eased immediate concerns over a prolonged conflict and potential energy-driven inflation, particularly linked to disruptions in the Strait of Hormuz.
Market analysts noted that the surge reflects a short-term relief rally, although uncertainty remains over Iran’s response and the durability of the pause in hostilities.
Meanwhile, silver prices jumped 4.3%, while platinum and palladium also recorded gains, indicating a broader upward trend in precious metals.
Despite the recent rebound, gold prices remain under pressure overall, having declined more than 8% since the conflict began in late February, as rising interest rate expectations continue to weigh on investor sentiment.
